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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Keppel DC REIT (SGX:AJBU).
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
View our latest analysis for Keppel DC REIT
Keppel DC REIT Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chief Executive Officer of Keppel DC REIT Management Pte Ltd Hsien Yang Chua bought S$153k worth of shares at a price of S$1.71 per share. So it's clear an insider wanted to buy, at around the current price, which is S$1.97. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Keppel DC REIT share holders is that insiders were buying at near the current price.
In the last twelve months Keppel DC REIT insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Keppel DC REIT is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Keppel DC REIT Have Bought Stock Recently
It's good to see that Keppel DC REIT insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought S$199k worth of shares. This could be interpreted as suggesting a positive outlook.
Insider Ownership of Keppel DC REIT
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own S$2.6m worth of Keppel DC REIT stock, about 0.08% of the company. We prefer to see high levels of insider ownership.